Tanjung Priok Throughput Keeps Growing

- Jakarta, 08/06/2018, 17:40


By : Bambang Sabekti, a business practitioner on logistic industry.

It’s good sign for Jakarta Port as the busiest port in  Indonesia which keeps growing on its throughput for both international and domestic volume. Based on our record for year to date  (YTD) May 2018,  volume for the Port of Tanjung Priok kept showing high positive growth by 17 % yoy (year on year) for combined international and domestic volume, from 2,384,000  TEUs  in the  same  period last year. Domestic market share contributed around 30% of total volume of this port.

The domestic and international YTD throughput grew up by 22% and 15% respectively, thanks to the significantly increasing volume during Ramadhan peak season. However, other  economic indicators also supported such growth.

BPS and BI Statements

In general, the price growth of various commodities in May 2018 showed an increase, according to Indonesia Central Bureau of Statistics (BPS). The price of various commodities in May 2018 generally showed an increase, mainly due to rising food prices.

Inflation in May 2018 was lower compared to the same month last year (2017) that reached 0.39%. Even, it was also lower than May 2016 that was accounted to 0.24%.

Inflation in May 2018  did not gain significant influence from the movement of the Rupiah exchange rate against the US dollar impacted by external pressures. The controlled inflation in the early period of Ramadan was also due to good coordination between the government and central bank to keep the food supply lower than May 2016 which was 0.24%.

The US dollar (US) exchange rate that had approached to Rp 14,200, proved not to have a major impact on price volatility and weakening purchasing power. This is reflected in the May inflation rate of 0.21% which is considered low.

The inflation rate in May also at once dismissed the predictions of some analysts who called the weakening of the Rupiah would impact on soaring inflation. In fact, the real rate was exactly contrary to any predictions.

This May also coincides with the month of Ramadan. According to Governor of Central Bank (BI), the low inflation during Ramadan proved the government appropriate strategy, keeping to ensure price stability.

This is a clear proof, a strong commitment between the government and BI, both at the central and regional levels to ensure that the supply of goods, the availability of goods, the price are under control.

World Bank Projection 

The World Bank, in its latest quarterly economic report, projects that Indonesia's economic growth for the 2018-2020 period will be in the range of 5.3 percent or higher than 2017's 5.1 percent.

The average economic growth of Indonesia is 5.3 percent in the period 2018-2020.

The growth above five percent is already on the top three among the G20 nations, but there is still a chance for higher growth, to reach 5.6 percent.

This projection is more realistic achieved because at this time many risks that could suppress the growth of Indonesia's economy such as global trade slowing, exchange rate volatility and decreasing household consumption.

However, it is very important for Indonesia to continue to improve the economic performance to grow more optimally, one of them by encouraging investment performance through consistency improvement of business facilities as already done by the government. 

The World Bank said low inflation was supported by increased spending ahead of the election and better commodity prices could trigger household consumption growth in this period.

The budget deficit is expected to remain well within the range of 2.3 percent of GDP in 2018, slightly better than the 2017 period of 2.4 percent of GDP, supported by improved receipts due to rising commodity prices and the progress of tax reform.

The current account deficit is expected to widen in the range of 1.9 percent to GDP in 2018, higher than 2017 of 1.7 percent, in line with strengthening domestic demand and weakening of the exchange rate.

This projection faces the risk of a possible rise in global protectionism that could weigh on economic growth and commodity prices as well as capital outflows as a result of the Federal Reserve's monetary normalization policy.

In accordance with BPS and BI report, international volume growth was 8.58% month to month, comparing with April 2018. Export import volume was also not affected by the weakening of Rupiah exchange.  

This news does not have any tags yet.